Asset allocation
It is a nine-square grid. Each column represents an investment style. The first is
“value”. A fund marked in this column would pick stocks due to low valuation (low
price ratios and high dividend yields) and slow growth (low growth rates for earnings,
sales, book value and cash flow). The central column represents “blend” funds,
including value, core and growth stocks. The last column is “growth”. A fund in this
column would pick stocks of companies that are growing fast (high growth rates for
earnings, sales, book value and cash flow) and high valuation (high price ratios and
low dividend yields). The rows are the market-cap categories across large-, mid- and
small-cap. A fund in row one would buy stocks of large-cap companies and that in the
bottom row would buy stocks in small-cap companies.
This fund is at the intersection of row one and column three. This means it buys
large-cap stocks in growth companies.